Trading Outside the United States

How does trading work if we’re not a U.S.-based team?

The Wharton Online Trading and Investment Simulator (OTIS) allows students to buy and sell securities using real-world market data and without risking real money. OTIS is active during the hours of the U.S. stock market on weekdays from 9:30 a.m. to 4:00 p.m. Eastern Standard Time (EST).

If you’re not based in the U.S., please keep the following in mind throughout the competition:

Be mindful of the time difference between your country and the U.S. stock market. For example, if you are trading in India, you are 9.5 hours ahead of EST. Therefore, you have a window of several evening hours to actively place trades while the U.S. market is open. So, when the U.S. stock market opens at 9:30 a.m. EST, it is actually 7:00 p.m. in India. The early evening hours might be a good window for your team to meet in person or virtually when you are deciding to actively place trades.

We do NOT expect you to stay up in the middle of the night to place trades while the U.S. stock market is open. Remember, the KWHS Investment Competition is not a trading competition, and therefore day trading is discouraged. The majority of your strategy should be focused on a long-term, buy-and-hold approach, which will not require a lot of buying and selling of stocks once you have, through analysis, determined your best portfolio mix. We do expect you to do some trading once you have built your portfolio (especially since Sachin has a short-term need); however, you should be strategic about this and not feel pressured to buy and sell frantically at all hours of the night. The bottom line is that you are NOT trying to prove the worthiness of your overall team portfolio/strategy by how much it grows over 10 weeks of trading. Who’s Sachin? If you haven’t yet read the case studyyou shouldn’t proceed with the competition.

Please note that you can place U.S. equity trade orders when the U.S. stock market is closed. They will clear at that price once the U.S. stock market reopens the next day.

A few other things to remember about OTIS:

Data in OTIS has a 20-minute delay from real-time. Equity orders placed during trading hours are filled with a delay that mimics the data feed delay and are based on exchange: NYSE, 20 minutes; NASDAQ, 15 minutes. For example, if a user places a trade for KO at 10:00 a.m., the order is filled at 10:20 a.m. at the 10:00 a.m. price.

There is more of a time delay for international securities not based in the U.S. They will go through at the end of the next trading day. If I place a trade for an international equity at 4:00 p.m. on Monday, it will clear at the end of Tuesday. However, if I place a trade for IBM (A U.S. equity) at 4:00 p.m. on Monday, it should clear at 9:50 a.m.-ish on Tuesday after the stock market opens.

Knowledge@Wharton High School Investment Competitions